Numbers often hold hidden significance. In numerology, the letter B equals 28—the number of wealth. Perhaps that's why the "Big Beautiful Bill" seems destined to create financial opportunities, especially for homeowners and real estate investors.
For California homeowners struggling with limited tax deductions since 2017, the increase in SALT (State and Local Tax) deduction caps from $10,000 to $40,000 delivers substantial relief. A household earning $250,000 with a $1.2 million home could save approximately $579 monthly—money that flows directly back into family budgets. Meanwhile, real estate investors benefit from reinstated 100% bonus depreciation, allowing first-year write-offs rather than spreading deductions across 27.5 years. Through cost segregation studies and real estate professional status, investors can potentially offset ordinary income, creating powerful tax planning opportunities.
Beyond these immediate benefits, the bill permanently increases estate tax exemptions to $15 million per person ($30 million per couple), dramatically improving wealth transfer options for families. This proves especially valuable in high-cost regions where real estate often represents half of household net worth.
However, these financial planning conversations unfold against challenging economic realities. Insurance costs have skyrocketed—some homeowners report premiums tripling in a single year. Industry experts recommend mitigation strategies like water shut-off devices, Firewise community participation, and higher deductibles to manage these costs, though many find themselves forced to choose between home ownership and financial sustainability.
As financial planner Chris Sheehy from Harbor Light Investments emphasizes, comprehensive financial planning means examining the "three legs of the stool"—lifestyle, retirement savings, and emergency funds. A balanced approach prevents homeownership from undermining long-term financial security. Whether you're considering ADU investments (which can generate substantial positive cash flow) or simply maximizing your primary residence benefits, understanding these changes requires personalized guidance from experts who've navigated these waters themselves.